Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

Shinheung SEC is an interesting small cap company in Korea that produces electric vehicles (EV) battery parts. Despite its small size, we believe this IPO will attract a lot of attention, given the company's excellent financials, strong growth potential, and extra premium on rechargeable battery parts makers due to the global surge in EVs. Established in 1979, Shinheung SEC started its business producing various mobile phones and TV components. Starting 2009, the company started to actively invest in the cap assembly field, which is the safety device of lithium-ion batteries for EVs. Currently, the company has five manufacturing facilities (including three overseas subsidiaries including in China and Malaysia) to produce cylindrical/prismatic rechargeable battery parts such as cylindrical/prismatic metal cap assemblies and cans used in EVs, energy storage systems (ESS), mobile phones, and power tools. The company's major customers include <a href="https://www.smartkarma.com/entities/503" target="_blank" data-smartkarma-citation="entities:503:1">Samsung SDI Co Ltd (006400 KS)</a>, <a href="https://www.smartkarma.com/entities/20692" target="_blank" data-smartkarma-citation="entities:20692:1">Sang A Frontec Co Ltd (089980 KS)</a>, and <a href="https://www.smartkarma.com/entities/504" target="_blank" data-smartkarma-citation="entities:504:1">Hanwha Techwin Co Ltd (012450 KS)</a>.The company has the number one domestic market share in the small and mid-sized cap assembly components. Its major Korean competitors include <a href="https://www.smartkarma.com/entities/20692" target="_blank" data-smartkarma-citation="entities:20692:1">Sang A Frontec Co Ltd (089980 KS)</a>, <a href="https://www.smartkarma.com/entities/12872" target="_blank" data-smartkarma-citation="entities:12872:1">Sangsin Energy Display Preci (091580 KS)</a>, K-Won Electronics, and Tae Hwa Industries. Going forward, the company plans to expand into the battery pack modules for the EVs and renewable energy storage systems.

Shinheung SEC is an interesting small cap company in Korea that produces electric vehicles (EV) battery parts. Despite its small size, we believe this IPO will attract a lot of attention, given the company's excellent financials, strong growth potential, and extra premium on rechargeable battery parts makers due to the global surge in EVs. Established in 1979, Shinheung SEC started its business producing various mobile phones and TV components. Starting 2009, the company started to actively invest in the cap assembly field, which is the safety device of lithium-ion batteries for EVs. Currently, the company has five manufacturing facilities (including three overseas subsidiaries including in China and Malaysia) to produce cylindrical/prismatic rechargeable battery parts such as cylindrical/prismatic metal cap assemblies and cans used in EVs, energy storage systems (ESS), mobile phones, and power tools. The company's major customers include Samsung SDI Co Ltd (006400 KS), Sang A Frontec Co Ltd (089980 KS), and Hanwha Techwin Co Ltd (012450 KS).The company has the number one domestic market share in the small and mid-sized cap assembly components. Its major Korean competitors include Sang A Frontec Co Ltd (089980 KS), Sangsin Energy Display Preci (091580 KS), K-Won Electronics, and Tae Hwa Industries. Going forward, the company plans to expand into the battery pack modules for the EVs and renewable energy storage systems. 

Shinheung SEC IPO Preview (Part 1) - Rechargeable Battery Components Producer

South Korea

Sang-A Frontec Co., Ltd. produces various fluoroplastic and functional engineering plastic products for a wide range of industries.

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Sang A Frontec (089980 KS)

Shinheung SEC IPO Preview (Part 1) - Rechargeable Battery Components Producer

Shinheung SEC is an interesting small cap company in Korea that produces electric vehicles (EV) battery parts. Despite its small size, we believe...

Douglas Kim

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